Joined: 11/Aug/2006
Location: India
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Posts: 1453
Topic: Indo borax and Chemicals Limited in welding and Posted: 03/Jan/2010 at 4:29pm
Indo borax and Chemicals Limited helping in welding and soldering well! Scrip code BSE: 524342
Company manufactures Borax and essential this industrial and laboratory chemical has its own importance.
From different survey or report from here and there I find
üBook value of the company is around INR90.00
üROCE for the year ending March 2007 :47.63%
üROCE for year ending March 2008: 56.25%
üROCE for the year ending March 2009 : 43.21%
üDebt Equity ratio is 0.04
üEPS of 2007 is 13.45
üEPS of 2008 is 22.50
üEPS 2009 is 22.36
üShare price January 2007 was 66.65 and June 2007 that was 221.45
üShare price January 2008 was 180.00 and June 2008 94.00
üShare price January 2009 was 60.95 and June 2008 68.35
üCMP (Current Market Price) is 80.60
I am not a person from finance but I can buy and sell stocks. I have bought INDOBORAX but I do not know what can be the price in June 2010 for the same!
Edited by PKB2000 - 03/Jan/2010 at 4:31pm
I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
Joined: 28/Nov/2007
Location: India
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Posts: 635
Posted: 03/Jan/2010 at 9:26pm
I like company, but sales is small so risk is high. they are going into real estate business so I prefer to buy around 60-65 for safe side. They can pay more dividend but they don't and going into risky business.
Respect the Markets and do MAKE mistakes, but see to it that you can afford to stay in the markets even after the mistake-RJ
Joined: 11/Aug/2006
Location: India
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Posts: 1453
Posted: 03/Jan/2010 at 9:32pm
Originally posted by master
TTM EPS is lower at 12.96 compared to 22.61 for FY09.
MCap/Sales is 0.7 with MCap only Rs 28 cr on an equity base of Rs 3.48 cr.
For last 3 half years, earnings are sliding from 15 to 7 to 5. Due to very small base figures, even a small fluctuation hugely impacts.
How is current operating performance and how is it poised for Q3/Q4-FY10 & FY11E?
I have another information that I get from our friend is that there is an unexpected write off of 1.8 crores in one June qtr. I think that is the reason it is still looking cheap in the market
Expectedly company is going to provide better performance
There are risks in stock market especially buying small / micro stocks but many of them are also future mid cap stocks. This company is not new and already established with div yield as I see is 1.84. To me it may be a very good buy at current price. I may buy more!
I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
Joined: 15/Jun/2009
Location: India
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Posts: 4013
Posted: 03/Jan/2010 at 11:29pm
A problem highlighted by the management in the directors report is about the availability of boron which is entirely imported and often supply constraints create problems.
Plus the govt focus on importing finished chemicals from outside India could dampen the company's prospects.
Big plus is the return ratios which are consistently above 25 and low level of debt.
Director's report also mentions that the demand for its chemical products is robust and growing.
Some of the negatives seem to be priced in at these levels.
Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.
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